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Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year 0 1 2 3 4 Cash
Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year 0 1 2 3 4 Cash Flow -$1,230,000 405,000 470,000 365,000 320,000 All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 4 percent. If the company uses a required return of 10 percent on this project, what are the NPV and IRR of the project? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter your IRR answer as a percent.) NPV IRR %
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